World Stock Markets

THIN PARTICIPATION KEEPS KSE-100 UNDER PRESSURE

The KSE-100 Index tumbled once again, losing 0.78 percent Friday to close near the 47,500 level amid political uncertainty, thin participation and concerns over geopolitics after the US strike in Afghanistan.

At close on Friday, the Pakistan Stock Exchange’s (PSX) benchmark index recorded a fall of 373.52 points or 0.78 percent to end at 47,577.06. Most sectors including financials finished lower, however, major dent came from oils where Mari Petroleum (-3.9%) witnessed the most decline, due to government’s recent divestment decision, followed by Oil & Gas Development (-2.4%) on reported institutional selling. Volumes stood low at 126 million shares versus 233 million shares in previous trading session.

Overall, trading volumes rose to 233 million shares compared with Wednesday’s tally of 217.8 million. Shares of 375 companies were traded. At the end of the day, 117 stocks closed higher, 244 declined while 14 remained unchanged. The value of shares traded during the day was Rs125 billion. Sui South Gas was the volume leader with 11.7 million shares, gaining Rs1.13 to close at Rs42.19.

GEOPOLITICAL FEARS PUSH NIKKEI TO LOWEST 2017 END

Tokyo’s benchmark index on Friday fell to its lowest close this year as geopolitical fears spiked after the US dropped a massive bomb in Afghanistan.

The Japanese market led Asian bourses lower with investors jittery after the Pentagon announced it dropped the largest non-nuclear bomb ever deployed in combat, targeting an Islamic State complex.

The Nikkei 225 dropped 0.49 percent, or 91.21 points, to end the session at 18,335.63, marking a weekly loss of 1.76 percent.

The broader Topix index of all first-section issues meanwhile fell 0.63 percent, or 9.24 points, to 1,459.07. It was down 2.06 percent over the week. In other Asian markets, the benchmark Shanghai Composite Index dipped 0.91 percent, or 29.89 points, to 3,246.07. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 1.39 percent, or 28.02 points, to 1,986.65. South Korea’s Kospi ended the day 0.64 percent, or 13.73 points, lower at 2,134.88.

FRESH GEOPOLITICAL JITTERS SENT DOW JONES SPIRALING

The Dow Jones Industrial Average closed at its session low, down 138.6 points, or 0.7 percent at 20,453.25 bringing its weekly deficit to 1 percent.

The S&P 500 Index (-2,328.95) gave back 16 points, or 0.7 percent, while the Nasdaq Composite (5,805.15) shed 31 points, or 0.5 percent — also at their session lows. For the week, the SPX and COMP shed a respective 1.1 percent and 1.2 percent. The CBOE Volatility Index (15.96) topped out at a session high of 16.22, before closing up 0.2 point, or 1.2 percent. On a weekly basis, the market’s “fear gauge” surged 24 percent.

NSE, BSE TO DISCONTINUE TRADING IN CAIRN INDIA STOCKS

Top stock exchanges National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will discontinue equity as well as equity derivative trading in the security of Cairn India from 26 April, as the cash-rich oil producer has merged into its debt-ridden parent Vedanta.

Under the merger deal, shareholders of Cairn India will get one equity share of Vedanta and four redeemable preference shares of face value Rs10 and coupon 7.5 percent.

Accordingly, in two separate notices, NSE and BSE have asked the investors and brokers not to deal in the equity shares of Cairn India with effect from 26 April. It is hereby notified that the following security will be suspended from trading with effect from 26 April, 2017.

SRI LANKA STOCKS HIGHER

Sri Lanka stocks were higher after the close on Wednesday, as gains in the Plantations, Beverages & Tobacco and Land & Property sectors led shares higher.

At the close in Colombo, the CSE All-Share gained 1.55 percent to hit a new 3-months high. The best performers of the session on the CSE All-Share were Browns Investments PLC, which rose 21.43 percent or 0.300 points to trade at 1.700 at the close.

Meanwhile, SMB Leasing PLC added 20.00 percent or 0.1000 points to end at 0.6000 and Standard Capital PLC was up 16.50 percent or 9.90 points to 69.90 in late trade.

The worst performers of the session were Serendib Land PLC, which fell 17.23 percent or 286.20 points to trade at 1375.00 at the close. Radiant Gems International PLC declined 12.22 percent or 3.30 points to end at 23.70 and George Steuart Finance Ltd was down 9.66 percent or 2.80 points to 26.20.

CHINA FUND MANAGEMENT PENALIZED

The Shanghai Stock Exchange imposed restrictions on some of China Fund Management’s accounts after the brokerage’s block trades caused Ping An Insurance and Industrial Bank shares to briefly tumble two days earlier. Insufficient communications on orders between the accounts’ investment adviser and the fund manager triggered the abnormal transactions. The bourse said effective risk controls weren’t taken and that trading restrictions will be imposed for a month on the accounts involved.

Industrial Bank’s shares fell as much as 7.4 percent in a sudden afternoon decline Wednesday before paring losses to 1.1 percent at the close. Ping An Insurance shares underwent a similar dip, quickly falling to trade down as much as 3.6 percent in Shanghai before recovering to close down 0.5 percent.

Market Overview

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